The following trial balance was taken from the records of Fairport Manufacturing Company at the beginning of Year 3.

The following trial balance was taken from the records of Fairport Manufacturing Company at the beginning of Year 3. Cash Raw materials inventory Work in process inventory Finished goods inventory Property, plant, and equipment Accumulated depreciation Common stock Retained earnings Total $20,000 1,800 2,400 4,200 15,000 $ 6,000 16,800 20,600 $43,400 $43,400 Transactions for the Accounting Period 1. Fairport purchased $11,400 of direct raw materials and $600 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $10,800 of direct raw materials had been used for production during the period. The use of indirect materials is determined at the end of the year by physically counting the supplies on hand. 2. By the end of the year, $10,500 of the accounts payable had been paid in cash. 3. During the year, direct labor amounted to 950 hours recorded in the Wages Payable account at $21 per hour. 4. By the end of the year, $18,000 of wages payable had been paid in cash. 5. At the beginning of the year, the company expected overhead cost for the period to be $12,600 and 1,000 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 950 for the year. 6. Selling and administrative expenses for the year amounted to $1,800 paid in cash. 7. Utilities and rent for production facilities amounted to $9,300 paid in cash. the plant and equipment used in production amounted to $3.000. 9. There was $24,000 of goods completed during the year. 10. There was $25,500 of finished goods inventory sold for $36,000 cash. 11. A count of the production supplies revealed a balance of $178 on hand at the end of the year. 12. Any over- or underapplied overhead is considered to be insignificant. Required a. Prepare T-accounts with the beginning balances shown in the preceding list and record all transactions for the year including closing entries in the T-accounts. b. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet. Complete this question by entering your answers in the tabs below. Req A Req B CGM Sched Reg B Inc Stmt Req B Bal Sheet Prepare T-accounts with the beginning balances shown in the preceding list and record all transactions for the year including closing entries in the T-accounts. Accounts Payable Cash 20,000 36,000 Beg. Bal. 10. Beg. Bal. 10,500 10,500 2. 18,000 4. 9,300 7. 1,800 6. End. Bal. 10,500 End. Bal. 16,4000 Wages Payable Beg. Bal. Raw Materials 1,800 11,400 Beg. Bal. 18,000 19,950 3. End. Bal. 13,200 End. Bal. 0 1,950 Manufacturing Overhead Common Stock Common Stock Manufacturing Overhead 11,970 5. Beg. Bal. 16,800 End. Bal. 16,800 End. Bal. 11,970 Beg. Bal. Beg. Bal. Work in Process 2,400 19,950 11,970 Retained Earnings 20,600 9,500 (cl) 10,800 1. 422 11. 24,000 9. End. Bal. 30,100 End. Bal. 0 902 Sales Revenue Beg. Bal. Finished Goods 4,200 24,000 25,500 10. End. Bal. 0 0 End. Bal. 2,700 Production Supplies Cost of Goods Sold 600 (cl) End. Bal. 600 0 End. Bal. 0 0 Property, Plant, and Equipment 15,000 Beg. Bal. Selling and Administrative Expenses 1,800 a ann! (cl) Sales Revenue Beg. Bal. Finished Goods 4,200 24,000 25,500 10. End. Bal. 0 End. Bal. 2,700 Cost of Goods Sold Production Supplies 600 (cl) End. Bal. 600 End. Bal. 0 Property, Plant, and Equipment 15,000 Beg. Bal. Selling and Administrative Expenses 6. 1,800 9,300 End. Bal. 11,100 End. Bal. 15,000 Beg. Bal. Accumulated Depreciation 6,000 3,000 8. End. Bal. 0 9 ,000 Reg A Req B CGM Sched > Req A Req B CGM Sched Req B Inc Stmt Reg B Bal Sheet Prepare a schedule of cost of goods manufactured and sold. FAIRPORT MANUFACTURING COMPANY Cost of Goods Manfactured and Sold For the Year Ended December, Year 3 Beginning raw materials inventory Purchases Raw materials available Ending raw materials inventory Raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured Goods available Cost of goods sold Req A Req B CGM Sched Req B Inc Stmt Req B Bal Sheet Prepare an income statement. FAIRPORT MANUFACTURING COMPANY Income Statement For the Year Ended December, Year 3 Sales revenue $ Cost of goods sold Gross margin $ 36,000 35,000 $ 36,000 Prepare a balance sheet. (Amounts to be deducted shou FAIRPORT MANUFACTURING COMPANY Balance Sheet for Year 3 At December, Year 3 Assets Cash Raw materials inventory Finished goods inventory Production supplies Property, plant, and equipment Accumulated depreciation Raw materials inventory Work in process inventory Total assets Liabilities Accounts payable Wages payable 16,400 13,200 2,700 600 15,000 (9,000) 13,200 (902) 51,198 $ $ 10,500 1,950 $ Equity Common stock Retained earnings Work in process inventory Total equity 16,800 30,100 $ 59,350